The immediate impact of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures (TRID) rule in October is quickly coming to light as existing-home sales bounce back after November’s steep drop.
According to the latest report from the National Association of Realtors, more buyers reached the market before the end of the year, and the delayed closings due to TRID pushed a portion of November’s would-be transactions into last month’s figure.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, skyrocketed 14.7% to a seasonally adjusted annual rate of 5.46 million in December from 4.76 million in November.
This is a significant jump compared to November’s 10.5% drop in total existing-home sales.
Lawrence Yun, NAR chief economist, said December’s robust bounce back caps off the best year of existing sales (5.26 million) since 2006 (6.48 million).
“While the carryover of November’s delayed transactions into December contributed greatly to the sharp increase, the overall pace taken together indicates sales these last two months maintained the healthy level of activity seen in most of 2015,” he said. “Additionally, the prospect of higher mortgage rates in coming months and warm November and December weather allowed more homes to close before the end of the year.”